The cryptocurrency market has been hit by a wave of liquidations, leading to falling prices for Bitcoin and several key altcoins.
Rapid Bitcoin Price Drop
Bitcoin's price has shed $5,000 in just an hour following the recent wave of market liquidations. According to current data, Bitcoin dropped to an intraday low of $97,332, decreasing by 4.57% over the last 24 hours. Investors who saw gains on Monday sold significant amounts of Bitcoin, adding to market pressure. Although Bitcoin's price remains relatively stable, further downside risks persist.
Crypto Liquidation Data
According to Coinglass, approximately $273 million in crypto positions were liquidated within an hour. Long positions accounted for the majority of this, amounting to $348.61 million. In the past 24 hours, 133,185 traders suffered unexpected liquidation. Bitcoin, Ethereum, Solana, XRP, and Dogecoin lead in terms of liquidation volume. Bitcoin saw $85.25 million liquidated in the last 24 hours. Exchanges like Binance and OKX also experienced significant liquidation volumes.
Impact of Trump’s Inauguration
The crypto market drop occurred ahead of Donald Trump's inauguration, scheduled for January 20. Many market participants expect the new administration to spark a rally among top cryptocurrencies. Recent sell-offs have raised discussions on whether Trump's policy will affect the crypto market as anticipated.
The cryptocurrency market is facing challenging times amid a wave of liquidations. However, much focus is placed on the potential impact of the US power transition, with many viewing the current downturn as a correction.
